Mac acquired 100% of Cheese for $200. At acquisition date Cheese had equity of $170, comprised as
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Mac acquired 100% of Cheese for $200. | ||||
At acquisition date Cheese had equity of $170, comprised as follows: | ||||
Capital | 100 | |||
Asset revaluation reserve | 20 | |||
Retained earnings | 50 | |||
Equity | 170 | |||
The book value of net assets was considered to be close to fair value, | ||||
except for the following: | ||||
Cost | Carrying amount | Fair value | ||
Intangibles | 0 | 0 | 30 | |
The tax rate is 30%. |
What is the amount of goodwill acquired by Mac?
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